Kenyan mobile money volume hit $16 billion

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Mobile money continues to grow strongly as Kenyans transacted Ksh1.7 trillion ($16.4 billion) over their phones in the quarter through September 2017, a 54.5% increase from the same period last year as subscribers increasingly use mobile money to pay for goods and services.

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Kenyan mobile money volume hit $16 billion

Data from the Communications Authority (CA) shows that the value of mobile commerce transactions grew significantly faster than person-to-person transfers.

While the value of mobile commerce jumped 60%, person-to-person transfers grew 14.7% in comparison to a similar period last year.

Measuring against the previous quarter, the value of total mobile transactions grew by 36%.

These levels of growth were unexpected given the overarching economic sluggishness during the elections period.

Upward trend

“Mobile money transfer services exhibited an upward trend during the quarter under review compared to the previous quarter despite the prolonged electioneering period which slowed down business activities in most sectors,” writes the CA.

Fast growth of mobile commerce reflects increased acceptance of mobile money as a form of payment by businesses across the country and is also associated with the rise of e-commerce in Kenya.

The value of mobile commerce transactions is expected to rise even further in the coming year as companies innovate in payments and with the expansion of the online shopping space.

Mobile money services

Safaricom, Kenya’s largest telecom, recently moved heavily into e-commerce, launching its own online shop — Masoko. However, commentators have argued that payment services in Kenya still remain tedious for most online shoppers.

Safaricom’s M-Pesa service and Equitel were the only mobile services that recorded growth in the value of transactions on a year-on-year basis.

Airtel Money saw the value of its transactions fall to Ksh1.2 billion ($11.6 million) from Ksh10.8 billion ($104.5 million) in September 2016 on the back of falling subscriptions.

Telkom Kenya earlier this year scrapped its mobile money service and is currently internally testing out a new platform before launching it in the market.